Recently, the provision that “import tariff shall be levied based on the finished automobile tax rate (25%) if the total prices of imported parts and components reach more than 60% of the price of the finished automobile of the type and meet the characteristics of the finished automobile” was cancelled.
At present, domestic auto market is brisk, with the majority of the finished plants forming complete supporting system of parts and components in China. Meanwhile, domestic auto parts and components manufacturers have reached a high level in the development speed of new products and other aspects. In this case, the policy has little effect on the finished plants that have developed to a certain scale and level, that is, generally speaking, it won’t impact the development of domestic auto industry too much. For consumers, its effect is not apparent, either.
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